Change of target group reduction for the first hiring 2026
“New” employers in Belgium who hired a first employee, benefit from a partial reduction from social security contributions during the entire period of employment of this first employee. This is called the 'target group reduction first hiring’.
This target group reduction has already been amended several times over the past few years. On 1 July 2026, a number of changes were introduced again. Below is an overview of these changes.
Reminder of the concepts
“A new employer” is an employer who has never been subject to Belgian social security, or who has not been subject to it for at least 12 consecutive months preceding the starting date of the first employee. Moreover, the company may not belong to the same so-called ‘technical business unit’ with another company.
The term ‘technical business unit’ is also explicitly defined. Two or more companies form a technical business unit together if there is a social link (at least one common person in the companies) and if there is a socio-economic interdependence (this is assessed on the basis of activities, location, clientele, material, personnel management, etc.).
Changes
1. First hiring
The employer's social security contribution for a white-collar worker in Belgium amounts to approximately 25% of the gross salary (depending on the competent joint industrial committee). Until 30 June 2026, the amount of the reduction for the first hire was capped at 3,100 EUR per full quarter.
As from 1 July 2026, this amount was reduced to 2,000 EUR per quarter. This target group reduction can still be applied for an unlimited period of time.
In practice, this lower cap only affects full-time gross monthly salaries exceeding 2,666 EUR per month. For a full-time employee who earns a maximum of 2,666 EUR gross per month, the employer will not have to pay any social security contributions. For full-time employees with a higher gross monthly salary, the employer’s contribution is reduced by a maximum of 2,000 EUR per quarter. This is illustrated by the following example.
Example: A full-time employee earns 2,666 EUR gross per month. This amounts to 7,998 EUR per quarter. We then take 25% of 7,998 EUR, which comes to 1,999.5 EUR. The first 2,000 EUR is exempt from social security contributions.
! If you have an employee with a target group reduction first hiring, you do not need to take any action yourself. We will automatically calculate the reduction for you. If the gross monthly salary of the employee, for whom you currently benefit this target group reduction, exceeds 2,666 EUR gross per month, take into account that your salary costs will increase.
2. Second to fifth hiring
In 2024, the reductions for the fourth to the sixth hired employees were abolished. Until 30 June 2026, employers were only entitled to a target group reduction for the first three hired employees. Furthermore, the reduction for the second and third hired employee remained in force for only 12 quarters, with the amounts decreasing over the course of that period.
From 1 July 2026, the reductions for the fourth and fifth hired employee will be reintroduced. From that date, employers will be able to benefit from a lump-sum reduction of 1,000 EUR per quarter for the second to the fifth hired employee. These target group reductions can be applied for a maximum of 12 quarters within a period of 20 quarters after the recruitment.
3. Transitional measures
The following transitional measures apply to current reductions for the first, second or third hiring:
- for the first hiring: from 1 July 2026, the maximum reduction amount will also decrease to 2,000 EUR per quarter (instead of the current 3,100 EUR per quarter);
- for the second and third hiring where the entitlement took effect before 1 July 2026, the reduction may continue to be applied unchanged in accordance with the old rules for the remaining quarters.
Overview
Finally, we provide a brief overview of the target group reductions as from 1 July 2026. These are the maximum amounts per quarter applicable in the event of full quarterly performances.
|
Hiring |
Reduction applicable before 1 July 2026 |
Reductions as from 1 July 2026 |
| First |
Until 1 July 2026: 3,100 EUR |
2,000 EUR (unlimited in time) |
| Second |
1,550 EUR – 5 quarters |
1,000 EUR, for a maximum of 12 quarters |
| Third |
1,050 EUR – 9 quarters |
|
| Fourth | - | |
| Fifth | - | |
| Sixth | - | - |
